Real estate tax credit extended for armed service members

Armed service members

The current $8,000 first time home buyer and $6,500 repeat home buyer tax credits expire for most Americans in four days, but for qualified service members, the tax credit will be extended until April 30, 2011.

Service members (armed or intelligence officers) who served an official extended duty outside of the U.S. between January 1, 2009 and April 30, 2010 for over 90 days may claim the tax credit for an additional year. Sales contracts must be signed by April 30, 2011 and close by June 30, 2011.

If the qualified service members are given orders for any extended duty of service and they must sell their home, unlike civilians, they are not required to repay the credit if they move out of their home within 36 months.

“Congress recognized that many service members may have missed out on the home buyer tax credit due to being posted overseas,” said National Association of Home Builders Chairman Bob Jones. “It is only fitting that they be given another year to take advantage of this opportunity in appreciation of the sacrifices they have made serving our country.”

CC Licensed image courtesy of walkadog via Flickr.com.